Amendment 3 could cut Panama City's property-tax revenue by about $2.5 million in year one, the city says. Here is what that means for the budget, homeowners and renters.
Amendment 3 on the Nov. 3 ballot could cost the City of Panama City about $2.5 million in property-tax revenue in its first year, the city said this week.
The city published the estimate Tuesday in an explainer on the amendment. It said the figures come from the property appraiser. The city also said the explainer “does not advocate for or against Amendment 3.”
What Amendment 3 would change
The city summarized the proposal this way:
- the homestead exemption would rise from $50,000 to $150,000
- it would rise again, to $250,000, beginning in 2028
- the yearly limit on assessment growth for certain non-homestead properties would drop from 10% to 5%
The aim is more property-tax relief for homeowners who qualify for the homestead exemption.
The estimated cost to the city
The city’s fiscal 2026 General Fund is about $62.4 million. Its General Fund tax rate is 4.7999 mills, and property taxes make up about 26.5% of General Fund revenue. That fund pays for police, fire, public works, streets, recreation and administration.
| Year | Estimated revenue drop | Share of the General Fund |
|---|---|---|
| Year 1 | about $2.5 million | about 4.0% |
| Year 2 | about $1.3 million | about 2.1% |
| Year 3 | about $953,000 | about 1.5% |
| Year 4 | about $412,000 | about 0.7% |
The city did not say whether the yearly figures add up or which calendar years they cover. It said actual effects could differ with property values, exemptions, the tax base and future millage rates.
What could be cut, and what the city says is protected
A smaller budget “would not automatically result in a reduction to any particular City service,” the city said. The City Commission would decide through the annual budget.
If cuts were needed, the city listed areas it could look at, including:
- recreation programs and community events
- beautification, landscaping and park maintenance
- cultural programs and discretionary grants
- capital projects, which could be delayed
- equipment replacement and new staff positions
- operating hours at some facilities
The city named four core services that would stay central to any budget talks: police, fire, emergency response and critical infrastructure maintenance. It also listed using reserves or finding other revenue as possible responses.
Who pays more, who pays less
Homeowners with the expanded exemption could save on their tax bills, the city said. Businesses, rental properties and other non-homestead property could carry a bigger share of the remaining taxable value.
The city also pointed out that its Fire Service Non-Ad Valorem Assessment is not a property tax. That separate charge on the tax bill pays for a large part of the Fire Department’s yearly budget.
What it means for you
- If you own and live in your home and have the homestead exemption, Amendment 3 would lower the taxable value of your home. How much you save depends on your assessed value and local tax rates.
- If you rent or own a business, the city said non-homestead property could carry more of the remaining tax base.
- Look up your own numbers. Our Panama City property taxes page explains millage and how to find your bill.
- Before you vote, our Panama City voting guide lists what is on the Nov. 3 ballot, including three City Charter amendments, and where to vote.
Frequently asked questions
What does Amendment 3 do?
It would raise Florida’s homestead exemption from $50,000 to $150,000, then to $250,000 beginning in 2028, and cut the annual cap on assessment growth for certain non-homestead properties from 10% to 5%, according to the City of Panama City’s summary.
How much could Amendment 3 cost Panama City?
The city published property appraiser estimates of about $2.5 million less property-tax revenue in year one, $1.3 million in year two, $953,000 in year three and $412,000 in year four. Year one is about 4% of the city’s $62.4 million General Fund.
Would Panama City cut police or fire if Amendment 3 passes?
The city said a revenue drop would not automatically cut any particular service and that police, fire, emergency response and critical infrastructure would remain core considerations. Any changes would go through the City Commission’s annual budget process.
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